Workers’ compensation insurance, commonly called workers’ or workmen’s comp, is a form of insurance designed to provide compensation to workers who have been injured while on the job.
While the details can vary significantly from one plan to the next, insurance plans in this category typically provide for some form of wage replacement, payment and/or reimbursement of medical costs, compensation for economic losses, possibly damages for pain and suffering, a compensation lawyer and settlements to the insured’s dependants in the case of a fatal work-related accident.
Workers compensation or workers comp, is an amalgamation of disability insurance, health insurance and life insurance, so it is critical that workers in high-risk careers are covered by it. The more you know about workers compensation, the better you are to deal with a work-related injury should it occur.
Workers compensation is linked to the trade unions and labour movements of the past which campaigned for higher protection of their members. Proponents of workers’ comp cite improved working conditions, economic support for employees, and the safety net provided by the insurance, as key benefits of workers’ comp. Critics of this type of insurance cite increased costs to employers. Another concern that is frequently raised is the possibility of American companies moving parts of their operations or even their entire companies to areas with looser workers’ comp law. However in the US nearly everyone is covered by workers compensation insurance and there are laws to enforce employers to use it.
There is a complex system of laws governing workers compensation insurance although the legalities differ from state to state. By getting in touch with a compensation lawyer you can find out more about the insurance. There can be abuse of the system however, for example, while most states don’t allow employers to deny employment based on previous workers’ compensation claims, employers are able to check a commercially maintained database of claims, a system that could potentially be abused by unethical employers. Employees are also able to abuse the insurance by filing a false claim, so there are harsh penalties if it is discovered that someone has tried to abuse the system.
The number of false claims made for workers comp has reduced because employers use tactics to uncover those abusing the system, like photographing or videoing them at physical activity. Certainly the vast majority of claims filed are the result of legitimate, unavoidable work-place injuries.